Stock Market CRASH of August 2011 (?)

 

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There is a SIGNIFICANT POSSIBILITY of a Massive Market Crash in the next few days.

Here is why:

On Friday, October 16 1987, when all the markets in London were unexpectedly closed due to the Great Storm of 1987, the DJIA closed down 108.35 points (4.58%) to close at 2246.74 on record volume.

Monday October 19 1987 (the next trading day) was black Monday when the Dow fell 22.6% in ONE DAY.

Today this would equate to a fall in the Dow of 2,572 points – in ONE DAY.

Imagine it!

So What About Yesterday?

Yesterday the NYSE composite index fell 5.41%.

Guess what?

Yesterday the NYSE recorded its highest volume day EVER!

Here it is in black and white:

NYSE Top 10 Record Trading Days of all time (before yesterday)

http://www.nyxdata.com/nysedata/asp/factbook/viewer_edition.asp?mode=table&key=3007&category=3

NYSE Volume Yesterday

http://online.wsj.com/mdc/public/page/2_3021-tradingdiary2-20110804.html?mod=mdc_pastcalendar

You will see on this page that Total Volume for 4 August 2011 (yesterday) was 7,504,992,235.
Is there a risk that the equity indexes will have a Colossal fall in the next few days?

You bet!

Happy Trading

Oli Hille

Author

“Creating the Perfect Trade”

www.TradingBook.net

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4 Comments »

  • Robert says:

    So today (Thurs 4 August 2011) is the highest volume ever recorded on the NYSE, fascinating. Wonder why Bloomberg and CNBC are not on to this story. Thanks for all your interesting posts Oli.

    • admin says:

      Thank you for your positive comment Robert. Yes that is exactly why I put up the post. I could not find anyone else who had noticed this! Since then, Monday 8 August broke the volume record AGAIN!

      Oli

  • Sam K says:

    So Oli, you were right about the big fall on monday!! Were you short?
    Monday was even higher volume than the friday. Incredible!!
    Is this the smart money accumulating from the dumb money (retail investors) that are getting shaken out of their positions?? Often after massive volume on down days this sets the stage for a major move in the opposite direction.
    The Fed announcement seemed bullish for equities. Im predicting this market to consolidate for a while and then rally for the rest of the year. This is my prediction and Im very aware its just an opinion and Im more than happy to be dead wrong. I’ll trade what I see :-)

    • admin says:

      Hi Sam, I totally agree that we need to trade what we see. But when I see hugely high volume down days and riots around the world just as Bob Prechter predicted, I think the picture is black and five figure Dow might soon be a fond memory!

      Oli

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